The Internal Revenue Service (IRS) recently announced, in no uncertain terms, that it is focusing in on high-income taxpayers who fail to file their tax returns. The agency notes that although this group was always a priority, this year it has shifted considerable resources to increase its focus.
What should you know about this announcement? The following are the highlights.
#1: High-income is not as high as you may think.
The feds are not looking at billion or even millionaires. In its latest efforts, the IRS has stated it is coming after those who earn more than $100,000.
#2: The IRS has evolved.
Gone are the days of agents in suits looking through paperwork. The agency has invested in some serious software and is using various algorithms and computer programs to sort through filings and flag any that may require closer scrutiny. IRS officials state this will reduce the amount of time it takes to find those who are attempting to avoid their tax obligations and increase the agents’ likelihood of a successful investigation.
#3: Penalties are serious.
The IRS statement also notes that it will “bring offenders to justice with both civil and criminal penalties.” As such, it is unlikely that those who have intentionally failed to file their tax returns will get away with a slap on the wrist. Taxpayers can face harsh financial penalties and, depending on the details of the allegations, potential imprisonment.
Those who are concerned their tax filings may not be in line with tax laws can take action to reduce the risk of penalties. The attorneys at Goldburd McCone are familiar with these matters. They can review your situation, discuss your options and help guide you through the process.